Core Viewpoint - The controversy surrounding the "fireworks show" has not significantly impacted the sales performance of the company, despite ongoing public debate and criticism [1][2][6]. Group 1: Sales Performance - The store in Beijing has been operational for over four years and continues to see customer traffic, with no significant decline in business noted [2]. - The average price of the company's hard-shell jackets ranges from 5,000 to 8,000 yuan [2]. - Sales staff reported that customer flow during the recent weekend was similar to previous weekends, indicating stability in sales despite the controversy [6]. Group 2: Financial Performance - The parent company, Amer Sports, reported that the revenue for the technical functional apparel segment, which includes the brand, was $509 million in Q2 2025, reflecting a year-on-year growth of 23%, but a decline of 11 percentage points compared to the previous year [7]. - Same-store sales growth for the segment slowed to 15% in Q2 2025, down from 26% in the same period last year, and significantly lower than the 80% growth seen in Q2 2023 [9]. Group 3: Market Expansion - The number of stores in Greater China increased from 18 at the end of 2019 to 75 by the end of 2024, while North America saw an increase from 24 to 65 stores in the same period [9]. - Industry experts suggest that the brand's previous high growth rates were largely driven by market advantages, and the current slowdown may indicate a transition to a more mature and stable growth phase [9].

Core Viewpoint - The controversy surrounding the "fireworks show" by the outdoor brand Arc'teryx has not significantly impacted its retail operations, as consumer traffic remains steady in physical stores despite the backlash [1][3][5]. Group 1: Retail Performance - Arc'teryx's physical stores continue to attract customers, with reports of steady foot traffic and sales at locations such as Beijing's Huiju Shopping Center and Shanghai's Bailian Outlet [1][3]. - Store employees noted that while there were some returns over the weekend, overall business has not shown a marked decline due to the controversy [3]. - The average price of Arc'teryx's hard-shell jackets ranges from 5,000 to 8,000 yuan, and the brand has not offered discounts, focusing instead on a points system for cleaning services [3]. Group 2: Financial Performance - In 2024, Amer Sports, the parent company of Arc'teryx, reported total revenue of $5.183 billion, with the outdoor functional apparel segment, which includes Arc'teryx, achieving a 36% year-on-year growth to $2.194 billion [5]. - The revenue breakdown shows that the Greater China region generated $1.298 billion in 2024, while the Americas and EMEA regions contributed $1.859 billion and $1.513 billion, respectively [5]. - By 2025, the Greater China region became the largest market for Amer Sports, with revenue increasing by 42% to $410 million, while the Americas and EMEA regions saw more modest growth [5]. Group 3: Controversy and Response - The "fireworks show" event, conducted in collaboration with artist Cai Guoqiang in the Himalayas, has sparked public debate, prompting local authorities to initiate an investigation [7]. - The official platform "Cloud Summit Everest" reported that the video of the fireworks show, released on September 20, has drawn significant attention from netizens, leading to a government response [7].

Core Insights - Canada Goose, once a leading luxury down jacket brand, is facing significant challenges in the market, particularly in China, where its growth has slowed dramatically from double digits to just 1% since 2022 [1][6] - The brand's decline is attributed to changing consumer preferences, with middle-class consumers shifting their focus to domestic brands like Bosideng and outdoor brands such as Arc'teryx, Salomon, and Lululemon [1][8][10] - Bain Capital, a major shareholder, is reportedly considering selling its stake in Canada Goose, indicating a potential exit from the brand as it struggles to maintain its luxury status [1][10] Group 1: Rise of Canada Goose - Canada Goose became a popular brand among the middle class in China after its entry in 2018, with a significant increase in store openings from 1 to 20 within three years [4] - The brand's peak was marked by its IPO in 2017, reaching a market value of $7.8 billion [4] - The brand's marketing strategy included collaborations with film productions and sponsorships of major film festivals, which helped elevate its status [2][3] Group 2: Decline in Performance - From 2022 to 2025, Canada Goose's annual sales growth rate plummeted from 21.54% to just 1.1%, with the Greater China region showing minimal growth [6] - The brand has faced management instability in China, changing its regional president three times since 2022, reflecting strategic uncertainty [6] - A significant public relations issue arose in 2021 when a consumer was denied a return in China, leading to a backlash and a perception of the brand as "arrogant" [6][7] Group 3: Market Competition - Competitors like Arc'teryx, Salomon, and Lululemon are gaining market share among middle-class consumers, with Arc'teryx showing strong growth in the Greater China region [8][10] - The rise of domestic brands like Bosideng, which has successfully diversified its product offerings, poses a significant threat to Canada Goose's market position [8][10] - The shift in consumer preferences towards functional outdoor wear, such as jackets and pants, has diminished the appeal of high-priced down jackets [10][11] Group 4: Future Outlook - Canada Goose is attempting to pivot by launching new product lines, such as the Snow Goose spring/summer capsule collection, but the effectiveness of this strategy remains uncertain [10] - The overall trend indicates a cooling market for foreign luxury brands in China, as both high-end and fast-fashion brands face increasing pressure from local competitors and changing consumer attitudes [10][11]

Core Viewpoint - Norrøna, a high-end outdoor brand from Norway, faces challenges in brand recognition and market penetration in China, despite its historical significance and advanced technology in outdoor gear [4][16][19]. Brand Background - Norrøna, established in 1929, is known for its durable outdoor equipment and was the first European brand to use Gore-Tex technology [5][10]. - The brand has a slow global expansion, primarily focusing on Europe and North America, with only 39 independent stores worldwide [5][6]. - Norrøna's nickname "老人头" (Old Man's Head) in China reflects its logo but lacks a formal Chinese name, hindering brand recognition [4][16]. Market Entry and Strategy - Norrøna is making its second attempt to enter the Chinese market, this time through independent flagship stores rather than collective retail [6][19]. - The brand has partnered with Chinese sports retailer Tmall to enhance its market presence and brand promotion [19][20]. Competitive Landscape - Norrøna is often compared to Arc'teryx, another high-end outdoor brand, with debates on which brand is superior based on product performance and pricing [9][10]. - Norrøna's pricing for men's jackets ranges from €219 to €1199 (approximately ¥1789 to ¥9794), while Arc'teryx's prices are generally higher in China [10]. Design and Aesthetics - Norrøna's design emphasizes Scandinavian minimalism with bold colors, while Arc'teryx focuses on ergonomic designs for comfort and functionality [12][16]. Historical Challenges - Norrøna's first entry into China in 2016 was unsuccessful due to inadequate local support and lack of brand recognition [18]. - The brand's previous operator, Sanfu Outdoor, struggled to allocate resources effectively for Norrøna, leading to its exit from the market [18]. Current Market Dynamics - The outdoor industry in China is evolving, with consumers shifting from "buying expensive" to "buying the right and cost-effective" products [19]. - Norrøna's re-entry comes at a time when the outdoor market is experiencing growth, and it aims to leverage Tmall's expertise for better market penetration [20].